Millionday News 7/26/13
[millionday] this is the entire report from the interview of the imf
[millionday] The IMF stressed the need to adopt a broad economic reform process, and point the strengths and flaws in the joints this economic report on article IV of 2013 on Iraq, which is an annual assessment by the IMF of the economies of the Member States of the Fund and report accompanied by assessment of the latest economic developments in those countries, and to fund experts forecast growth macroeconomy in three to five years following the date of issuance of the report.
The Iraq section of the report is based on consultations held with the Iraqi side, the Iraqi private sector and members of civil society, in March 2013.
millionday] Broad structural economic reform Head of IMF mission to Iraq Carlo sdralvage in an interview for (morning): that Iraq needs to formulate a structural economic reform agenda is broad, but more importantly, it needs to follow up the implementation of the agenda in all its contents.
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There is still much work to be done in the area of public finance, improve budget management, but most importantly be in improving growth and reducing poverty, he highlighted the importance of raising the quality of expenditure, this can be accomplished primarily through the Elimination of waste, and direct expenses for the poor.
Describing Iraq's need to focus on increasing the level of electrical energy, the restructuring of State enterprises, State-owned and simplify regulations to help ensure focus on assisting the private sector instead of imposing restrictions,
[millionday] he noted that Iraq also needs to revive agriculture, including reform of the public distribution system, which contributed to the decline of local agricultural production through food imports. We recognize and understand that all these measures are difficult to perform, and will require time.
Therefore, the need to adopt a realistic approach and open to all. In question for (morning) of the private banking sector in recent times to attack him by reasons of money-laundering and illegal transfer of funds.
Do you see that building? In response said that we are not aware of any specific cases of money laundering, but we recommend that the Central Bank of Iraq to redouble its efforts in the promotion of a stable and secure financial sector. In this regard, the commitment of the Iraqi
[millionday] Central Bank Governor, to strengthen supervision of banks encourage us to push for the implementation of this recommendation. In our opinion, much work remains to be done to improve oversight of banks, for example, provide the banking oversight staff better and better, effective training courses (with other government entities) co-sourcing "functions of the Banking Department of the Central Bank of Iraq,
[millionday] note -- the training is talking about the reduction in mistakes money laundering compliance ect ect
millionday] Improving the framework In addition to expanding the reach of the regulatory acts of the Government banks include State-owned.
Moreover, to improve the framework for combating money laundering and terrorist financing, consistent with the recommendations of the financial action task force for the Middle East and North Africa (MENA FATF), along with continued efforts in strengthening the regulatory tasks performed by the Central Bank of Iraq on combating money laundering and terrorist financing, which will help address concerns about money-laundering and the financing of terrorism.
We must also develop the financial infrastructure, such as the reporting of historical background and credit guarantees (assets), and ways of banking technology, to support the performance of the banking sector.
[millionday] And the Iraqi dinar exchange rate and on the role of the Central Bank in the currency auctions. In your opinion, what should be done about it central? Sdralvage explained it saying that we believe that the Central Bank liberalized foreign exchange regime at the earliest opportunity where this is technically feasible.
We expect that the relaxation of foreign exchange regulations would provide the amounts needed by Iraqi citizens in US dollars, to help the Iraqi economy, reduces the difference, which has in fact declined after recent measures taken by the Central Bank of Iraq, which simplified market, opened to customers.
This means minimum, allow access by any Iraqi citizen, foreign exchange, if it wishes to conduct any ongoing international transaction, for example, for the purposes of the importation of the goods, as well as for interest payments, or remittances to family expenses.
[millionday] note >>>>>>>>>>>>>>>>> we believe that the Central Bank liberalized foreign exchange regime at the earliest opportunity where this is technically feasible.
[millionday] note -- the last part of this is the support of what we saw today as in doing international business and the right to buy on the internet and wire money ect ect
[Godsalli/Jim] Provide Iraqi citizens in US dollars..... Not good!
[millionday] they will be paired to the usd
[millionday] no you dont understand
[Godsalli/Jim] I never do lol
[LBnFL] Godsalli/Jim Me too!!! lol lol lol
[millionday] they are saying that they need to be able to exchange their money as in to the usd to do trade and use the internet for international purchase which is how that is done
[Godsalli/Jim] Can't they do that now? Ok I see....
[hstrymknwmn] millionday woohoo that is how I understood! you made me feel a LITTLE smart lol
[millionday] not yet -- supposed to be this month by the end
millionday] since they are paired with the usd -- it translates to it and then for the international purchase as that rate it is a little more complicated than it should be that is for sure
[millionday] but this is the thing - they are saying that iraq has to implement the ability of the citizen to be able to join the world as soon as possible as well
millionday] as they put it -- as soon as they are technically able hmmm i think microsoft said they are technically able
[dlherm] Are they not already technically able?
[sisterbreen] millionday the peeps have to be able to use the equipment
[millionday] when they have the cards loaded through the system
[wmawhite] millionday ......do you believe this report is from information gathered over the last several months or from a more recent meeting?
[Godsalli/Jim] Give them those cards and I guarantee you they learn quick
[millionday] the only way to buy on the internet ect is with a card and there are many other things they have to activate the entire system at once
[schmidtberger] Godsalli/Jim amen
[millionday] this is an interview of the head of the imf about the state iraq is in and what is happening
[millionday] there is more
[ROBINREDHED] well they nearly started a huge civil war thru facebook last week i think they know how to use a computer
[janiem] Is their smart card a charge card or more like an ATM card
[millionday] it is a debit card
[janiem] Thanks that's what I thought
[millionday] at this stage it appears it will be but they are also setting up all services for banking so they will have the credit card system set up as well but
[Godsalli/Jim] I want one
[millionday] the mastercards we have been talking about for the last couple days are for debit
[janiem] So they have to have money on it to use it
[ROBINREDHED] i have a mastercard, needs loaded
[millionday] as we saw in this part -- hold on brb
[millionday] janiem right
[millionday] and the rate needs to be set at the rate they are going to use paired to the usd so they are not loaded yet to prevent the use of them globally i would gather
[Godsalli/Jim] We've been telling them that for years
[dlherm] So a debit mastercard? Use it anywhere mastercard is accepted online but debits your bank account!
[faith1] seems to me a big,, get going NOW from IMF ,, !!
[millionday] see>>>>>>>>>>>>. This means minimum, allow access by any Iraqi citizen, foreign exchange, if it wishes to conduct any ongoing international transaction, for example, for the purposes of the importation of the goods, as well as for interest payments, or remittances to family expenses.
[millionday] dlherm yes
[millionday] faith1 i agree and there is more brb with it
[millionday] The power of the Central Bank "We understand there are two foremost cares disturbing on the liberalization of the Foreign Exchange System.
First, some argue that opening the auction probably works Iraqi reserves depletion of foreign exchange to dangerously low levels, undermining the value of the Iraqi dinar.
Also do not believe that this decline in the value of the dinar will happen on the ground to the CBI in a strong position it can preserve the value of the dinar and foreign currency inflows from oil revenues was too high.
And the Central Bank have ample amount of reserves amounting to more than 70 billion dollars, an amount large enough to cover over nine months of imports, or to cover more than 104 percent of money offered in the broad sense, meaning that it equals all of Iraqi dinars in circulation plus deposits
[millionday] so what they have decided to do --- can be done
[millionday] Misuse of foreign currency The upsets, the second relates to the ability of the Central Bank to prevent the misuse of foreign currency in illicit activities.
We do not believe that auctions currency is the right tool to prevent misuse.
As is the case at the level of international best practices, the IMF recommends to address the concerns of money-laundering through due diligence (or study precluding doubt) for clients, and report suspicious transactions to the Economist Intelligence Unit (intelligence), instead of restricting access to the auction.
Accordingly, the liberalization of the foreign exchange auction needs in parallel with liberalization, to be accompanied by a strengthening of the regulatory tasks performed by the Central Bank and other government agencies on combating money laundering and financing of terrorism.
millionday] Asked about the possibility of transition to a market economy in accordance with the Iraqi Constitution? He sdralvage that Iraq did not adopt clear economic policy (a clear economic model) and troubled lives between planned economy (wave).
He noted that the current model of economic growth, which the Government's dominant role in Iraq's economy, with extremes.
And in order to any free economy to evolve on a sustainable basis, the Government needs to implement a combination of prudent macroeconomic policies, and to enhance service delivery, and to rebuild infrastructure, particularly in the power sector, in addition to strengthening the business environment, these measures will support private sector growth, but last but not least, it is imperative for the Government to know their limits, in order to leave space for the private sector to flourish.
[millionday] note -- this is the needed action of every country smile
[millionday] Asked about his vision for the increase in oil production and exports? And do you agree with official forecasts for that increase? He said assuming that the ambitious investment plans for the Iraqi Government will be achieved on the ground, we expect oil production to rise gradually, about 400-500 thousand barrels per day each year, to 5.7 million barrels per day by 2018.
However, these expectations depend on the smooth implementation of the oil-field development plans and a relatively stable security situation.
Any delay in the development of oil fields, or to expand energy export infrastructure, worsening security situation worse will lead to lower growth in the oil sector
[millionday] And we must say that our expectations significantly lower expectations of the Government, which believes that oil production will rise to 9 million barrels per day by 2018.
And we tend to be more conservative because we are less optimistic about the pace of the expansion of the necessary infrastructure for export – which is perhaps the most important obstacle to export, we are also more cautious about progress on water injection project, increasing the number of floats "SPMs" add to the high level of domestic consumption
[millionday] Additional investments "We have stated in our three areas of reform in the energy sector. First Iraq could benefit from the oil and gas law that illustrates the roles of Government, the private sector and the provinces and territories in the oil sector.
But we know that the draft oil and gas law has been under consideration for a long time, and it addresses a lot of critical policy issues; therefore the compatibility between all parties involved in negotiations on the Bill is important to reach a durable good.
Secondly, the situation requires additional investment in electric power production, and the restructuring of electric power producers, electric rates. Such measures are required in the energy sector to provide a reliable source providing electric power to homes, businesses and industries. All of these combined efforts will help to develop the non-oil sector, and eventually lead to more jobs.
millionday] Electrical energy subsidies Third is that removal of distortionary fuel subsidies provided to producers. In 2011 alone, we estimated the total amount of fuel subsidies (9.8) billion dollars, or 5.4 percent of GDP.
This is a very heavy cost for the country like Iraq has a great social needs and infrastructure. Power subsidies created distortions detrimental to the economy, it could discourage wheel investment in the energy sector and in industries that require more intensive workforce, as well as those subsidies create incentives for waste and smuggling.
Therefore, we have encouraged our mentioned the Iraqi authorities to reduce those subsidies, using part of the savings to increase the aid to those who most need it.
LBnFL] They've almost convinced ME that they really aren't ready for monetary reform! And that they may NEVER think they are ready!
[millionday] really ? wow i am sitting here very excited --- this is great in my opinion
[ROBINREDHED] me too millie
[LBnFL] I just hear them saying they need more training, more of this, more of that.
[rollonjohn] Me too
[millionday] LBnFL were you here when i said that this is the interview this morning from the head of the imf?
[mdglow] 3,5 mill barrels now !! 70 bill reserve 68 tons gold bs they are ready
[ROBINREDHED] im ready
PART 2 CONTINUED
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